Subscription Lines and Syncreon

April 21, 2023

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Today, we will learn more about:

  1. Syncreon Deal Summary

  2. Subscription Lines

Syncreon

We learned last week the basics of English schemes, and it is now time to learn about one of the most interesting schemes of recent years.

Syncreon is a sprawling provider of logistics services to global automotive and technology manufacturers, and in 2019 it needed to restructure its $1.1 billion in debt. The complexities of its international operating structure, combined with the loss of a major technology contract, resulted in a critical liquidity crunch that rendered impossible its ability to service its debt. With steep maturity walls looming in 2020, Syncreon even instigated the sale of its business; however, no buyer was found.

Complicating matters further, the guarantors for its debt were based in the US, UK, Canada, Germany, Hungary, Ireland, the Isle of Man, the Netherlands, and Poland—thereby requiring any restructuring solution to satisfy each’s applicable law.

Why a Scheme?

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